Bangladesh to Implement 2012 VAT Law on July 1, 2017

In his June 1, 2017, budget speech, the Bangladeshi Minister of Finance announced the July 1, 2017, implementation of the Value Added Tax and Supplementary Duty Act, 2012. A full copy of Bangladesh’s 2017-2018 Budget Speech may be found here. While the Act was passed in 2012, its implementation has been deferred in order to give the business community more time to prepare for the change. The Act’s most significant change is the elimination of reduced rates: from July 1, 2017 forward, Bangladeshi VAT will only be collected at a 15% rate or a nil rate. The list of exempt goods and services will also be modified. A full copy of the Act can be found here.